Cognition of internal control structure: an exploratory study

Abstract

The three basis of the perception of internal control culture of organisation mostly studied currently are: control environment, control monitoring procedures, and information systems and communication. The control environment is consisted of atmosphere, which contributes to an effective management. The control and monitoring procedures are activities, which if executed in a timely manner and in an appropriate form, enhance the risk management. The information systems enhances that the communication and information flow in organisation occurs on right way. The current study presents evidence relating to the discriminant validity of the instruments concerning the three dimensions of internal control, by analysing the Alpha of Cronbach structure of the items involved, the correlation and also gives a proof of the appropriateness of the research instruments. A sample of 24 auditors was drawn from the independent audit firms, namely: Price WaterhouseCoopers, Ernest & Young, Deloitte Touche Tohmatsu e KPMG (big four) located in São Paulo. Results attest the capability of the items in collecting data relating to internal controls, besides that the dimensions homogeneously correlates amongst one another.

Key words: internal control, information systems, monitoring.